Cheap New Mexico Car Insurance

Find affordable auto insurance that works for you in New Mexico. Compare quotes from over 100 top companies.

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The Zebra partners with some of the companies we write about. However, our content is written and reviewed by an independent team of editors and licensed insurance agents, and never influenced by our partnerships. Learn more about how we make money, review our editorial standards, reference our data methodology, or view a list of our partners.

Here's what you need to know when driving in New Mexico

Across the Land of Enchantment, there are 142,940 miles of road just waiting to be driven. We’ll help you gather insurance quotes online. Then, you take the wheel, knowing that you got the best value insurance on the market.


Affordable insurance companies in New Mexico

What's the cheapest car insurance in New Mexico?
Rank Company Name Avg. Annual Premium
1 Safeco $994
2 USAA $1,023
3 State Farm $1,063
4 Allied $1,246
5 Dairyland $1,320
6 The Hartford $1,339
7 Progressive $1,514
8 Cal Casualty $1,607
9 Farmers $1,866
10 Allstate $2,586

Get quotes from dozens of companies that provide coverage throughout New Mexico. Enter your ZIP code below to get started.

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Cheap auto insurance for good drivers in New Mexico

Drivers with good driving records typically enjoy lower car insurance costs than drivers with histories of speeding tickets, at-fault accidents, or DUI citations. New Mexico drivers without a recent moving violation can save 15% on their car insurance premiums, on average — compared to the national average of 17%. In addition to earning a cheaper premium for driving incident-free, you may qualify for a safe-driving bonus through your car insurance company. The amount of these discounts may vary, but they typically run between 5 and 10%.

Rating Factor $ Savings % Savings
No Traffic Tickets $247 15.78%
No Accidents $655 33.19%
Good Credit $879 40.01%


Cheap auto insurance for young drivers in New Mexico

Young drivers (those between the ages of 16 and 25) pay extraordinarily high auto insurance rates, with those aged 16-19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teens pay more than three times the national average for car insurance. In New Mexico, the typical teen driver pays $4,996 per year, which aligns closely with the national average for all teen drivers.

Age Annual Rate with Parents Annual Rate Alone
16 $5,147 $6,861
17 $4,920 $6,028
18 $4,636 $5,093
19 $4,144 $3,144


Cheap auto insurance for bad drivers in New Mexico

If you have a clean driving record — no at-fault accidents, speeding tickets, DUIs, or other recent citations — you'll probably pay less for car insurance. Conversely, a bad driving record will cause your rates to skyrocket: car insurance premiums typically increase by 34% after a DUI, 33% after an at-fault accident, and 15% after a speeding ticket in New Mexico. The post-citation penalties assessed by car insurance companies after DUI violations and at-fault accidents in New Mexico align with nationwide averages, but drivers enjoy lower-than-average rate hikes after speeding tickets. If you have a clean driving record, be sure to check for good-driving discounts from your insurer.

Rating Factor Annual Rate % Increase
At-Fault Accident $1,972 33.19%
DUI $2,017 34.68%
Speeding Violation $1,564 15.78%
Bad Credit $2,196 40.01%

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Top rated car insurance companies in New Mexico

Each car insurer emphasizes its low premiums. But as with any product or service, the cheapest car insurance isn't always the best choice. Considering the financial stakes, it's worth doing your homework to find an auto policy that will cover your car completely after an incident. Hunt for the best value, instead of settling for the cheapest auto insurance you can find.

Use the table below to better understand the quality of service you'll receive. You'll see reviews for popular auto insurers' financial strength, claims satisfaction, and customer satisfaction including an internal satisfaction score from The Zebra's customers. 


Insurance Company

Claims Satisfaction

(J.D. Power)

Customer Satisfaction

(J.D. Power)

Financial Strength

(A.M. Best)

Customer Satisfaction

(The Zebra)

Allied N/A N/A Average N/A
Allstate Average Average Superior 4.3 / 5
Cal Casualty N/A N/A Good N/A
MetLife N/A Below average Excellent N/A
Progressive Below average Below average Excellent 4.3 / 5
Safeco Average Average Excellent N/A
State Farm Above average Above average Superior 4.5 / 5
The Hartford Excellent Above average Excellent N/A
Travelers Average Below average Superior 4.3 / 5
USAA Excellent Excellent Superior 4.6 / 5


New Mexico auto insurance laws

In New Mexico, drivers are required to maintain liability insurance coverage at or above the below levels:

  • Bodily Injury $25,000 per person
  • Bodily Injury $50,000 per accident
  • Property Damage $10,000 per accident

Optional coverage in New Mexico (varies by carrier):

  • Comprehensive
  • Collision
  • Loan/Lease Payoff
  • Medical Payments
  • Rental Car Reimbursement
  • Roadside Assistance
  • Uninsured/Underinsured Motorist Bodily Injury
  • Uninsured Motorist Property Damage

For the legal minimum coverage level in New Mexico, expect to pay an average of $609 each year. This average cost is cheaper than the U.S. average by 7%. If you opt for better coverage, you can purchase a policy with comprehensive and collision coverage, which will protect against damages caused by car collisions, theft, vandalism, or weather incidents. Better auto insurance comes at a cost: in New Mexico, a comprehensive policy with a $1,000 deductible runs $1,188, 95% more than liability-only coverage. For a comprehensive policy with a $500 deductible, expect to pay 119% more than you might for a liability-only policy.

Learn more about car insurance laws in New Mexico.

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How tickets change insurance rates in Mexico

If you get a ticket, your car insurance rates will probably rise. By how much depends on the severity of the violation, your insurer's pricing standards, and differing local insurance risks and regulations. That's why tickets may have a different impact on insurance in your state compared to the national average.

Below is a snapshot of average car insurance rates in New Mexico after a few common violations.

Violation Avg. Annual Auto Insurance Rate % Insurance Rate Increase $ Insurance Rate Increase
Hit and Run $2,239 66% $887
Refused Breathalyzer/Chemical Test $2,054 52% $703
DUI $2,054 52% $703
Racing $1,966 45% $615
Reckless Driving $2,028 50% $676
Driving with a Suspended License $1,929 43% $578
At-Fault Accident $1,927 43% $575
Driving with an Open Container $1,598 18% $246
Operating a Vehicle Without Permission $1,717 27% $365
Passing a School Bus $1,712 27% $361
Improper Passing $1,684 25% $332
Following Too Closely $1,684 25% $332
Speeding $1,615 19% $263
Failure to Stop at a Red Light $1,684 25% $332
Illegal Turn $1,685 25% $334
Driving Wrong Way/Wrong Lane $1,684 25% $332
Failure to Yield $1,684 25% $332
Speeding in a School Zone $1,649 22% $297
Driving Too Slowly $1,648 22% $296
Distracted Driving $1,663 23% $312
Driving with Expired Registration $1,470 9% $119
Failure to Show Documents $1,470 9% $119
Not-at-Fault Accident $1,480 9% $128
Failure to Use Child Safety Restraint $1,470 9% $119
Failure to Wear a Seat Belt $1,470 9% $119
Driving Without Lights $1,440 6% $88


New Mexico car insurance FAQs

Who actually has the cheapest car insurance in New Mexico?

For our average user profile, Safeco ($497) and USAA ($511) have the cheapest car insurance in New Mexico.

Is car insurance cheaper in New Mexico?

Rates in New Mexico are about average compared to the rest of the U.S. Our data suggest New Mexican drivers pay $64 less per year than do drivers in the rest of the U.S.

Is New Mexico a no-fault state for car insurance?

No — New Mexico is currently an at-fault state. Meaning at-fault drivers must pay for the bodily injury damages they cause to other people.

How much does car insurance cost in New Mexico cities?

Car insurance companies calculate your rate based on many factors, location of the vehicle being an important one. The cheapest car insurance is found in Alamogordo, New Mexico, and the most expensive in Albuquerque, New Mexico.

Rank City Avg. Annual Premium
1 Albuquerque $1,556
2 Rio Rancho $1,432
3 Espanola $1,429
4 Hobbs $1,408
5 Santa Fe $1,356
6 Roswell $1,355
7 Los Alamos $1,277
8 Gallup $1,247
9 Las Cruces $1,216
10 Alamogordo $1,136


Recent Questions:

If I started a claim with my insurance company but later decided to settle out of pocket with the other driver, will my rate still be impacted?

Unfortunately once the insurance company has been notified of a crash the information will be documented on the CLUE report of the driver involved in the accident. Since there is no way to say with any certainty how the incident will impact your rate, as that decision is ultimately up to Geico, proceeding with the claim or dropping it will not change the end result concerning your rate.
Aug 10, 2017 Santa Fe, NM

How do you establish the cost of replacement for homeowners insurance policies?

Similar to how individual companies have different underwriting methods to determine rates, every insurer figures their replacement cost for a home differently. Some use tax records, mortgage info, average property values, and other data.
Jun 15, 2020 Albuquerque, NM

Can insured party use their own coverage after not-at-fault accident?

I don't really have any resources for you. The uninsured driver who is at fault in the accident will be responsible for the damages.
Aug 20, 2018 Albuquerque, NM

What companies offer vacation/ short term rental policies

If you're referring to renting out your home on services such as Airbnb, I would recommend looking at what are called Homeshare policies. A few companies that provide them (in addition to the companies you mentioned) are Slice, Progressive, and Allstate.
Jun 1, 2018 Santa Fe, NM

Ross Martin
Ross MartinManager, Content Quality

As a licensed insurance agent, Ross researches and writes insurance content intended to help users make informed decisions.

Ross's background is in writing and education. He holds a master's degree from Royal Holloway, University of London.

Ross's work has been cited by The New York Times, Investopedia, The Simple DollarThe BalanceCar and Driver and Fox Business. He has been quoted by CNET, I Drive Safely and Kin Insurance

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.

  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.

  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.

  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.